Loan Book Reviews / Adequacy of Bad Debt Provisions
We have completed independent loan book reviews and implemented tried and tested bad debt provisioning policies for Credit Unions.
The Regulator has stated on numerous occasions that the Res. 49 provision is the absolute minimum provision for defaulting loans.
The Bad Debt Provision should be calculated at the very minimum on a quarterly basis using a consistently applied policy with focus on rescheduled loans, top-up loans, single lump-sum repayment loans, bullet type loans, interest only loans and connected party loans.